Survey: Store brands offer savings on organic, gluten-free products

NEW YORK — A recent survey conducted by the Private Label Manufacturers Association revealed that private label products offered significant savings.

Although many organic products had a private label product, some did not have a national brand counterpart. Of the products that did, consumers saved 15% on private label products. For gluten-free products, PLMA discovered that consumers could save 17% on private label products, compared to national brand counterparts. Other store brand products could save consumers up to 41%.

Consumers with special needs, including those who suffer from food allergies or adhere to special diets, can also save with store brands.

Consumers who bought soy burgers, lactose free milk and low-salt chicken broth, among other specialty food products, saved almost 30%, compared to national brand products.

Representing a $26 billion market, organic food sales are on the rise, with projected sales reaching $60 billion by 2020, a report from Packaged Facts said. 45% of consumers actively try to incorporate organic products into their diet, and for consumers under the age of 29, that jumps to 53%, according to a recent Gallup survey.

But elevated costs of organic food could affect the growth of this market. A consumer survey by Walmart found that 91% of people would buy organic products if they were more affordable. Kroger, Costco and Target have tapped into this demand by unveiling their own store-brand organic products, with Kroger’s Simple Truth Organic already worth $1 billion.

Gluten-free products are also growing in popularity. With gluten-free sales growing 63% since 2011, they will reach $8 billion this year, according to Mintel, a market researcher. Mintel also anticipates that sales will reach $14 billion by 2017.

Consumers with food allergies represent a significant portion of the market. About 15 million U.S. adults and children suffer from food allergies, while another 5 million are allergic to various chemical products, according to the Food Allergy Network. Approximately 20% of consumers said that they avoid certain foods due to an allergy or intolerance most or all of the time, a recent survey from Datamonitor said.